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UPS Union Issues
Central States Pension - UPS will not cover difference ?
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<blockquote data-quote="UpstateNYUPSer(Ret)" data-source="post: 1144737" data-attributes="member: 12570"><p>I am not a lawyer but I did stay at a Holiday Inn Express over the weekend....</p><p></p><p>Suppose your pension is $3K/month and due to financial constraints the pension fund managers of CS vote to reduce their pension to $2.5K/month in order to protect the pension fund. UPS would then be obligated to make up the $500/month shortage; however, if CS is mandated by the Federal government to reduce their pension or if the fund defaults and is taken over by PBGC, which would severely reduce the pension to around $1.1K/month, UPS would not be obligated to make up the $1.9K shortfall.</p><p></p><p>The biggest problem facing most pension funds is the inverse ratio of actives and retirees. In a healthy fund there should be more money coming in than going out. In Upstate NY we have about 5,000 more retirees than actives. It doesn't take a math whiz to figure out that if you have more money going out that coming in that you are going to be in trouble. We are currently 51% funded; however, this figure includes last quarter of the 2008 financial turndown. Our BA told us that once this figure falls off the books that our pension fund should be in the upper 60% range and should only improve from there.</p></blockquote><p></p>
[QUOTE="UpstateNYUPSer(Ret), post: 1144737, member: 12570"] I am not a lawyer but I did stay at a Holiday Inn Express over the weekend.... Suppose your pension is $3K/month and due to financial constraints the pension fund managers of CS vote to reduce their pension to $2.5K/month in order to protect the pension fund. UPS would then be obligated to make up the $500/month shortage; however, if CS is mandated by the Federal government to reduce their pension or if the fund defaults and is taken over by PBGC, which would severely reduce the pension to around $1.1K/month, UPS would not be obligated to make up the $1.9K shortfall. The biggest problem facing most pension funds is the inverse ratio of actives and retirees. In a healthy fund there should be more money coming in than going out. In Upstate NY we have about 5,000 more retirees than actives. It doesn't take a math whiz to figure out that if you have more money going out that coming in that you are going to be in trouble. We are currently 51% funded; however, this figure includes last quarter of the 2008 financial turndown. Our BA told us that once this figure falls off the books that our pension fund should be in the upper 60% range and should only improve from there. [/QUOTE]
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